Brexit: A Match that Lights the Tinderbox (Video)

All of the talk over the last few days has focused on Brexit. But Peter Schiff says people are ignoring some bigger issues. On Monday, he appeared on Fox News Business and continued pounding this theme, calling Brexit a “day of reckoning,” and reiterating a point he made on CNBC’s Trading Nation – that the Fed now has an excuse to cut rates and launch more quantitative easing:

First of all, this is not about Brexit. Brexit is all the media. Brexit is the catalyst. It is like the match that lights the tinderbox. The markets are artificially propped up by central banks, by cheap money, by QE, and it’s all hype and hope. The markets never should have been where they were. And what Brexit is doing is challenging the belief that the markets have the confidence in central bankers to keep all these bubbles in the air…There’re a lot of dominoes that are going to come down. Yes, the Fed is going to use this maybe as an excuse to cut rates and do QE 4. It was looking for an excuse for a long time. But we have some real serious problems that go beyond what is happening in Britain.”

Peter offered a poignant warning for Americans who think it’s just about Brexit and its impact on the European economy, saying they need to look at what’s going on in their own back yard:

People are worried about the UK. We are going to have a much worse recession in the United States. You know, we have 50 states that are trapped in a much worse union than the EU. And unfortunately, we’re stuck. We can’t get out. Britain is able to extricate itself from the mess in Europe, but we’re stuck with a bigger mess here in the United States.”

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Larry Levin of Trading Advantage chimed in and said he totally agreed with what Peter was saying:

The central banks have been propping these markets up for years. They’ll want to do it more, and they’ll do it even more now that this is happening.”

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